PROCESS STRATEGIES.

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Presentation transcript:

PROCESS STRATEGIES

Figure : Relationship of Product Decision and Capacity Planning Research and Technology Marketplace and Demand Product decisions Process planning and capacity decisions Workforce Master work schedule Aggregate plan for production Inventory on hand Raw material available Master production schedule and MRP system External Capacity (subcontractors) Detailed work schedule

PROCESS STRATEGIES FOUR PROCESS STRATEGIES Process Focus Repetitive Focus Product Focus Mass Customization Focus Comparison of Process Choices

Fit of Process, Volume, and Variety Process focus projects, job shops,(machine, print, carpentry) Standard Register Repetitive (autos, motorcycles) Harley Davidson Product focus (commercial baked goods, steel, glass) Nucor Steel High Variety One or few units per run, high variety (allows customization) Changes in modules Modest runs, standardized modules Changes in attributes (such as grade, quality, size, thickness, etc.) Long runs only Mass Customization (difficult to achieve, but huge rewards) Dell Computer Co. Poor strategy Low-Volume (Intermittent) Repetitive Process (Modular) High-Volume (Continuous) It may be most useful to begin discussion of this slide with the repetitive process since most students seem to have a concept of an assembly line. Once the repetitive process is introduced, one can then view changing one of the parameters, volume or length of run, and argue the need for process- or product-focus systems. Once the three types of processes have been introduced, it is probably useful to discuss precisely why the low-volume/long run, and high-volume/short run options are usually poor choices.

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